Average cost of a monthly mortgage.

tdsmithj

I really need some help from people who are not biased.

I want to move house from my 1 bedroom apartment. I keep getting opinions but one is from a mortgage broker and one from my parents which seem to give out very different opinions.

I want a 150'000 mortgage. We have a 30 thousand deposit I'm on 14,000 but finding a new job. and my wife is on 23 thousand a year. My question is what's the average people pay for a home a month and would it be feasible for us to pay? We have no debt, credit card issues or ccjs. I know a accurate response is impossible but just need advice.

Thanks

haras_nosirrah

As a guide I would say no more than 1/3 joint take home pay.

holly_hobby

Here is a link whereby you can amend the interest rate and amount borrowed yourself, and compare between repayment and IO (minus repayment vehicle) costings

http://www.nationwide.co.uk/mortgages/calculators/mortgagerepayments.htm

Lenders affordability assessment is circa 35% of income (which may be adjusted in accordance with other status matters)

Hope this helps

Holly

funscott

with a combined income of 37k that means you bring home around 2k a month in your hand and your looking for 150k mortgage? thats 4x your income (148k) or do you mean you want to spend 150k and you have 30k saved giving you a 120k mortgage (3.25 x salary)

cant see a bank lending you 4x but might give you 3.25.

From my salary / monthly payments i spend around 33% on my mortgage. so you would be wanting to spend £660 per month

a 120k mortgage at 4% over 25 years = £640p/m

callmechar

We are looking for around 4x income (3.85 times income) which PO have agreed in principle

tdsmithj

funscott wrote: »

with a combined income of 37k that means you bring home around 2k a month in your hand and your looking for 150k mortgage? thats 4x your income (148k) or do you mean you want to spend 150k and you have 30k saved giving you a 120k mortgage (3.25 x salary)

cant see a bank lending you 4x but might give you 3.25.

From my salary / monthly payments i spend around 33% on my mortgage. so you would be wanting to spend £660 per month

a 120k mortgage at 4% over 25 years = £640p/m

We are looking for a house which is around 180,000. We have a deposit of 30,000. So 150,000. But we could offer 170,000 and only need 140,000.

This would be over 30 years.

holly_hobby

To save a lot of possible headaches and heartache for all, I would really suggest getting an AIP/DIP from a lender (try Halifax for a start as they don't leave a footprint on your credit record). This will give you a general basis of what you can borrow and over what max term, before actually getting into viewing properties and making any offers etc. (make sure you divulge all commitments, any adverse credit etc).

If you just want to know how much a given amount will cost, at a particular interest rate, over a given term, the calculator I posted earlier will assist.

Hope this helps

Holly

Yorkie1

I'd echo what Holly Hobby has posted, but I notice that you say that one of the conflicting opinions you've received is from a broker. Have you already visited a mortgage broker and what did they say, having done a full fact find on your circumstances?

System

just did a quick calculation on yorkshire building society - the approx figure they would lend is 161000 based on your salaries (BUT this is a rough guide - either way you are close to the limit).

There are a number of other factors to consider
-do you have children (or plan to)
-do you both work full time (and if you are planning children would one of you go part time?)
-do either of you have prospects for promotion/increased salary
- what savings do you have?

I would speak to an IFA. :money:

chopper78

You say you are looking for a new job, don't start looking until you move as a new job usually means a probationary period which usually means blowing your mortgage application out of the water. Bad idea to change circumstances mid-application...

Wh05apk

Lenders will go UP TO 5x joint income, so you are just over 4x, which should be ok with most lenders, but you are the ones paying it, you should be comfortable it is affordable, presumably ast some point, you might think about children, if so without your wife's income how would you cope?

With regards changing jobs, best to stay put for now, but lenders surprisingly seem less concerned about new jobs/probationary periods than they used to be.